On March 25, Elkem Spark Silicones delivered its first order of 15t 201 methylsilicone oil (DM5) as internal supply products straight to Basel, a plant in South Korea, which marked that the Asia Pacific Supply Chain Team of Elkem Silicones had, by constantly advancing the cooperation and resource sharing mechanism between Asia Pacific plants, promoted the maximized capacity utilization and rationalized inventory level in the Asia Pacific region, effectively reduced the overall operating costs, and created a complete closed-loop of Asia Pacific supply chain, providing a strong power for the sustained and rapid business development of Elkem Silicones.

Basel Plant is a South Korean enterprise specialized in the production of downstream specialty organosilicone gel, which was merged and acquired in August 2019 by Elkem Silicones, the BlueStar's affiliated overseas company; it is to provide high-end special materials for skin care and make-up as well as water-proofing agents for the construction industry. Before M&A, Elkem Silicones was an indirect supply partner for important raw materials of Basel Plant, and thus cooperated through the intermediate agent.

After M&A, Asia Pacific Supply Chain Team of Elkem Silicones have actively carried out their business sorting cooperation and process refinement validation, paid close attention to the demands of Basel and other internal supply plants, continuously developed new business process communication methods, realized the direct supply of raw materials by Elkem Spark Silicones rather than the indirect supply by agents, laying a good foundation for steadily pushing forward the internal supply business integration in the Asia Pacific region. Such measure can not only effectively reduce the communication links, improve the work efficiency, minimize the operating costs, but also greatly secure the timely supply of raw materials and product quality stability. In order to complete the production of the first order of internal supply products to overseas enterprises with quality and quantity guaranteed, Elkem Spark Silicones overcame difficulties during the outbreak of COVID-19, gave priority to the production of Basel Plant and delivered on time.

In addition to South Korea, Elkem Silicones has other internal supply plants distributed in Shanghai and India in Asia Pacific region. The Supply Chain Team are constantly sorting out the demands of internal supply enterprises and benchmarking the product standards, working closely with the R&D and production teams to develop and certify more new internal supply products, so that the Asia Pacific plants are linked more closely.

Next, Asia Pacific Supply Chain Team will continue to promote the effective coordination among the regional plants, assist Elkem Silicones business departments with the regional market strategy, and establish the resource sharing mechanism with the global regions, try hard to build the digital supply chain support system, and facilitate the Asia Pacific plants to leverage powerful synergies in the production, R&D and optimization of the industrial value chain and consolidating the global market position.